September 16, 2025/Coronation Report

Summary

Headline inflation decelerated markedly in August 2025, printing at 20.12% y/y (–175bps from 21.88% in July), marking the fifth consecutive month of disinflation and underscoring a sustained moderation in price pressures.

On a month-on-month basis, headline inflation slowed to 0.74% (–125bps from 1.99% in July), reversing the previous two months of acceleration. The moderation was largely driven by a sharp pullback in food inflation, which offset an uptick in core inflation. Seasonal harvest has increased food supply which has also helped to reduce food price growth.